أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
True, debt is actually the cheaper source of finance for a couple of reasons.
However, taking on debt financing, though cheaper is not without risks for the firm taking on the debt (borrower). Or taking on debt may not be suitable in certain situations.
Now you know that debt is usually a cheaper source of finance than equity, but not always the case. So next time if you see debt on the balance sheet of a company you are looking at investing in, don't be too alarmed. If the quantum of debt is not too high and it is taken at cheap rates then it is a good, cheap alternative.